HRRAC reiterates call for Airbnb regulation

CEBU, Philippines — The Hotel, Resort, and Restaurant Association of Cebu (HRRAC) has renewed its campaign against the proliferation of unregulated Airbnb operators in Cebu, citing their adverse effects on the recovering hospitality sector.

HRRAC President Alfred Reyes announced that the organization recently submitted a position paper to the Department of Tourism (DOT), reiterating its call for stricter regulation of Airbnb operators.

He emphasized that these operators create unfair competition by avoiding taxes.

The position paper urged oversight from both the DOT and the Bureau of Internal Revenue (BIR).

"Airbnb operators must comply with the same regulatory and tax frameworks as hotels. Without this, we face unfair competition that undermines the accommodation sector," Reyes stressed.

Airbnb is an online marketplace and hospitality service that allows individuals to list or rent short-term lodging, including vacation rentals, apartment rentals, homestays, and hotel beds.

While the DOT has expressed plans to regulate Airbnb, the Philippine government has yet to finalize regulations for this emerging accommodation model.

In addition to disrupting price dynamics in the hospitality sector, the growing number of Airbnb facilities in Cebu has captured a significant share of accommodation bookings, which would otherwise be served by hotels and resorts.

Back in 2019, the DOT announced plans to regulate the Airbnb sector, but these efforts have yet to materialize.

According to Reyes, HRRAC plans to bring this issue not only to the DOT and BIR but also to the House of Representatives.

“We are planning to bring this to Congress,” he said.

Reyes likened the situation to ride-hailing apps, which are now governed by the Land Transportation Franchising and Regulatory Board (LTFRB). He argued that Airbnb should receive similar regulatory attention.

Unlike hotels and resorts, Airbnb operators can offer significantly lower prices, primarily because “they don’t pay taxes,” Reyes pointed out.

In other countries, he noted, Airbnb is already regulated, fostering a healthy and conducive business environment for the entire accommodation sector.

According to a study conducted by Oxford Economics, commissioned by Airbnb to assess its economic impact, the platform contributed $840 million to the Philippine economy and supported nearly 103,800 jobs in the country’s tourism industry in 2022.

The report also revealed that one in every 77 jobs in the Philippine tourism sector was linked to Airbnb in 2022. Additionally, Airbnb guests spent a total of $876 million in the Philippines that year on restaurants, retail stores, and transportation.

The study recorded that domestic Airbnb guests accounted for $445 million of this total expenditure in 2022. — (FREEMAN)